News 2025

Recent trends The Institute’s Professional Standards Department has recently seen an increase in the frequency and complexity of proposed restructures of accounting and audit firms including: Institute firms acquiring or merging with other accounting and audit firms; Changes in a firm’s principals (retirements, additions); Creation of new firms within a firm network structure (including the splitting of an existing firm into a number of smaller firms sometimes with a focus on a particular business line or jurisdiction); Interests in a firm being fully or partially acquired by larger firms or other external investors including the involvement of private equity investors in firm/network ownership structures. These trends are observed in both Ireland and the UK. Early engagement with the Institute advised Firms who are considering a change in the firm’s structure or ownership are advised to engage with the Institute’s Professional Standards Department at an early stage in the process.  Such early engagement is important to ensure that any impact on existing firm authorisations is fully understood and properly planned for.  Law and Institute Regulations in both Ireland and the UK set out detailed eligibility criteria which must be met by firms authorised in reserved areas such as audit and investment business.  These eligibility criteria include specific requirements regarding the qualifications of principals and those having ownership/control at authorised firms.  While Institute Regulations require firms to notify the Institute promptly after a change in circumstance which could impact authorisations takes place, firms will benefit from early engagement with the Institute in relation to proposed restructuring transactions.  Firms will, no doubt, want to avoid a situation where a significant transaction concerning the firm’s structure has taken place only to discover that the revised structure negatively impacts the firm’s eligibility for authorisation in a key area. Firms considering a restructure should contact the Institute at authorisations@charteredaccountants.ie.  The Institute will advise the firm regarding the information which should be shared with the Institute initially and as the restructuring plans progress.  The Institute will request information to enable a full understanding of the proposed restructure and the impact on the firm’s eligibility for authorisation(s).  Such information is likely to include the detailed agreements and documentation underlying a transaction such as revised partnership agreements, constitutional documents such as articles of association and where relevant, service level agreements between entities within the revised structure. Frequently, the complexity of restructuring transactions requires that the Institute dedicates significant time to review the relevant documentation, engage with the firm’s principals and conclude in relation to ongoing or new authorisations as a result of a firm restructure.  A firm’s engagement with the Institute early in the restructuring process helps ensure sufficient time for Institute consideration and for the processing of any new applications for individual or firm authorisations arising. The Institute cannot provide legal advice in relation to potential firm structures.  The Institute assesses information provided to conclude whether the Institute can continue to provide authorisations to the restructured firm(s) in reserved areas in accordance with the Institute’s Regulations. Oversight bodies In certain cases, it may also be appropriate for a firm and/or the Institute to engage with relevant oversight bodies such as IAASA or the FRC.  For example, an audit firm which is registered with the FRC as a UK public interest entity (PIE) auditor will be obliged to share information with the FRC in relation to a transaction which could impact UK audit registration. Fees For new notifications of restructuring arrangements received on or after 1 January 2025, the Institute may charge a separate fee to firms for the consideration of the impact of a firm restructure on a firm’s authorisations in reserved areas.  The fee will be dependent on the complexity of the proposed restructure and the work involved in the Institute’s assessment of all relevant information.  This fee will contribute to the cost incurred by the Institute in the consideration of the proposed restructure and may include a contribution towards any legal advice which the Institute needs to undertake in this regard. Further information Any queries in relation to any of the matters raised above can be directed by email to authorisations@charteredaccountants.ie  

The Institute has revised the Public Practice Regulations with effect from 1 January 2025.  The key change (Regulation 6.19) relates to professional indemnity insurance (PII) requirements at firms authorised for investment business activities in Ireland.  Polices of PII taken out or renewed on or after 1 January 2025, by an authorised investment business firm whose investment business activities extend beyond referral only business,  must, at a minimum, provide cover for €1,564,610 (up from €1,300,380) per claim and €2,315,610 (up from €1,924,560) in aggregate.  This cover should be ring fenced in respect of the firms’ investment business activities.    This change arises from a recent revision by the Central Bank of Ireland of the Conditions and Requirements attached to the Institute’s recognition as an Approved Professional Body (APB).  The Professional Standards Department has recently written in this regard to investment business compliance principals at firms authorised by the Institute to carry out investment business in Ireland. Given the increase in PII requirements for firms generally from 1 September 2024 (PPRs revised effective 1 September 2024) this is not expected to have a significant impact on firms approved by the Institute for investment business in Ireland.    However, investment business firms are advised to discuss this requirement with the firm's PII provider to ensure compliance. Other revisions to the Public Practice Regulations can be summarised as follows: Practising certificate cessation: The list of circumstances in which a practising certificate (PC) will cease is amended to include where membership ceases under Institute Bye-Laws or other Institute Regulations (Regulation 5.5(c)) – this is consistent with other existing Institute Regulations. Practising certificate eligibility: Introduction of a provision for the Quality Assurance Committee (QAC) to require a PC applicant who is a reciprocal member to successfully complete an aptitude test where appropriate. (Regulation 5.10A). Disciplinary arrangements and affiliates: Clarification that a matter relating to an affiliate may be referred to another professional body, where appropriate, when an affiliate is subject to regulation by another professional body (Regulations 7.12 and 7.13) Sustainability assurance engagements:  Revision of definitions of 'reserved areas' and 'accountancy services' to include sustainability assurance work pursuant to CA 2014.  Therefore, consistent with the Audit Regulations (incorporating assurance under CSRD), effective 11 October 2024, a member who is a sustainability assurance service provider (SASP) is required to hold a practising certificate. Change to insolvency regulation: Revisions to reflect cessation of Institute’s role as a Recognised Professional Body (RPB) for the regulation of insolvency in the UK with effect from 1 January 2025. (Definitions: ‘insolvency practitioner’, ‘Insolvency Licensing Regulations and Guidance’, ‘Regulatory Committee’, Regulations 6.2 and 6.5(a)) Note the cessation of the Institute’s non-statutory insolvency practising certificate regime for Ireland was reflected in the Public Practice Regulations effective 1 September 2024. Miscellaneous:  The opportunity has also been taken at this time to make some minor editorial amendments. The Public Practice Regulations, effective 1 January 2025 are available on the Institute’s website.  Previous versions of the Public Practice Regulations remain available to read on the Archive page of the Institute’s website. Any member queries in relation to the revised Public Practice Regulations can be directed to professionalstandards@charteredaccountants.ie.

The Institute has revised the CPD Regulations with effect from 1 January 2025.  CPD Regulation 4.6 now specifically mentions 'sustainability assurance' as a subject area in which a member who is working in practice should undertake CPD if that member is involved in work of this nature.   This is an explicit application of the core principle that a member should undertake whatever CPD is necessary to ensure that he/she is competent for the work in which he/she is engaged.   Separate from this requirement, any individual who is approved by the Institute as a Sustainability Assurance Service Provider (SASP) should comply with CPD requirements for SASPs as set out in the Institute’s Audit Regulations (incorporating assurance under CSRD), effective 11.10.24.  The CPD Regulations, effective 1 January 2025 are available on the Institute’s website.  Previous versions of the CPD Regulations remain available to read on the Archive page of the Institute’s website. Any member queries in relation to the revised CPD Regulations can be directed to professionalstandards@charteredaccountants.ie.